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The Rise of Programmatic Advertising

We explore programmatic advertising and the benefits to marketers.

19/03/2015

What do marketers need to know about Programmatic Advertising? It will most certainly be essential to any media buyer’s digital strategy in the future. Last year in the US revenue attributed to real-time bidding (RTB) reached $1.6 billion and 34% of all display advertising revenues projected will come from RTB by 2017.

The future of programmatic will include taxis, bus shelters and every device you have as a consumer. Your cookies will not be isolated to one single device but multiple devices providing you with advertisements specifically tailored to you. Brands will be able to create an emotional experience with their audience and use data to identify, match and bid for space. Thus, boosting media efficiency and helping brands to find the right audience at the right time. The talk has been that “programmatic TV is coming” and it certainly isn’t here across the board just yet but we have seen a step forward.

Recently, Channel 4 kicked started its first programmatically-traded video-on-demand ads across their catch up channel, 4oD. The rebranding of 4oD will arrive due to Channel 4 signing Dentsu Aegis Network as launch partner, creating All4.

This week also announced the unveiling of four news publishers forming a programmatic advertising alliance, Pangea Alliance. This allows brands to collectively access an influential global audience via the latest programmatic technology. The Guardian, CNN International, The Financial Times, and Reuters collectively sum up the founding partners. This gives marketers access to a dedicated marketplace to use and automate their buying within the advertising space; with the publishers also planning to group data about their audiences, further allowing marketers to target effective campaigns.

“When we began thinking about the next wave of the Guardian’s global expansion, we thought there was a gap in the market we could solve to collaborate with other publishers” said Tim Gentry, Global Revenue Director at Guardian News & Media and leader of the Pangaea project. The alliance will enable marketers to reach a combined audience of up to 110 million unique users across the five publishers’ sites. Crucially, their combined audience data could prove powerful for targeting and retargeting ads to specific types of consumers.

We are however at a stage now where processing this information has to be automated, this is why we are fast approaching a “programmatic” revolution. Through sophisticated algorithmic technology is able to find valuable characteristics, gauge consumer behaviour and target messages, with laser focus, to the right audiences. The rise of programmatic advertising is one to watch, far and wide.

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